First Time Home-buyer Checklist

1FIRST TIME HOMEBUYER CHECKLIST
FIRST TIME
HOMEBUYER
CHECKLIST

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TABLE OF CONTENTS
Introduction........................................................................................................................03
Be Informed About Your Credit.....................................................................................04
Understand Your Financial Picture..............................................................................06
Select a Mortgage Professional & Get Pre-approved............................................09
Research First-Time Buyer Programs..........................................................................10
Choose the Best Mortgage Loan Program................................................................11
Shop and Make an Offer on a Home...........................................................................14
Complete the Mortgage Loan Process........................................................................17
About American Pacific Mortgage................................................................................18

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Ready to learn more about the
steps that will take you along
the road to homeownership?
If this is your first time going through the homebuying
process, you may have some questions about where to
begin and who to turn to for help.
For example, who do you contact first: a real estate agent
or a loan advisor?
(The answer may surprise you.)
Follow along as we break down these steps one-by-one so
you can have a better understanding of the home buying
process.
1. BE INFORMED ABOUT YOUR CREDIT
2. UNDERSTAND YOUR FINANCIAL PICTURE
3. SELECT A MORTGAGE PROFESSIONAL
4. RESEARCH FIRST TIME BUYER PROGRAMS
5. CHOOSE A MORTGAGE LOAN OPTIONS
6. MAKE AN OFFER
7. COMPLETE THE MORTGAGE LOAN PROCESS
FIRST TIME
HOMEBUYERS’
CHECKLIST

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BE INFORMED ABOUT YOUR CREDIT
It’s important to know your credit score and how it will factor into a lender’s decision to
qualify you for a home loan.
How much do you know about your credit? Your credit score will definitely play a large role
in getting a mortgage loan and favorable interest rates. Knowing your credit score and
reviewing your credit report before you consider buying a home may help you prevent
unexpected surprises.
HOW TO REQUEST & REVIEW YOUR CREDIT REPORT
You can request a free copy of your credit report once each year from all three of the major
credit reporting agencies. Go to www.annualcreditreport.com to receive your free credit
report.
Once you have your credit report, be sure to review it. If you see any mistakes in your report,
you will want to take care of them immediately. Contact both the credit bureau and the
organization that reported the incorrect information to have it fixed.
1

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CREDIT REPORTING AGENCIES (CONT.)
Experian: 1-888-397-3742
Agency
Debt Agency
Phone
Phone
Amount
Amount Owed
Report inaccuracies:
Outstanding debt:
Score:
TransUnion: 1-800-916-8800
Agency
Debt Agency
Phone
Phone
Amount
Amount Owed
Outstanding debt:
Score:
You may also contact the agencies directly to request your score (may require a fee):
Equifax: 1-800-685-1111
Score:
Agency
Debt Agency
Phone
Phone
Amount
Amount Owed
Outstanding debt:

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UNDERSTAND YOUR FINANCIAL PICTURE
Buying a home will require a good understanding of your overall finances, and your future
financial goals.
If you plan on buying a home, you will need to have a good understanding of your finances.
A lender will look at your overall financial picture to qualify you for a mortgage loan, so it’s a
good idea to know where you stand:
Write down all of your earnings
for the year, including wages,
commissions, bonuses,
self-employed income, as well
as any child-support payments,
alimony payments, or other
income you have
Make a list of all your obligations.
You will want to know how much
you owe in total for all credit
cards, retail accounts, student
or auto loans, and other debts.
What is the minimum monthly
payments required for each?
What have you saved? Take
note of how much you have in
your savings accounts, as well
as retirement accounts such as
IRAs or 401ks.
And finally, identify your
spending habits. How much are
you spending on essentials, such
as your living expenses, and how
much is going towards
non-essentials such as dining
out, or entertainment? This will
help you identify any trade-offs
you might be willing to cut out of
your non-essentials budget.
S T E P 1 S T E P 2 S T E P 3 S T E P 4
2

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Create a financial snapshot that is up-to-date. Writing this information
down will be helpful when it is time to meet with a loan advisor.
FINANCIAL SNAPSHOT WORKSHEET
Income Source
Type of Savings
CreditorDates Received
Total: $
Total: $
Min. Monthly
PaymentAmount
Amount
Amount Owed
Step 1: Earnings
Step 3: Savings
Step 2: Obligations
$
$
$
$
$ $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total: $

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FINANCIAL SNAPSHOT WORKSHEET (CONT.)
Date Date
Essentials Non Essentials
Description Description
Total: $ Total: $
Amount Amount
Step 4: Spending
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

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SELECT A MORTGAGE PROFESSIONAL & GET PRE-APPROVED
The mortgage loan advisor you select will be your guide
through the home buying process.
Selecting a mortgage advisor to team up with early in
the home buying process is extremely important. An
experienced and knowledgeable mortgage loan advisor
will help you review your overall financial picture, discuss
your financial goals, and determine what homeownership
looks like for you. Your advisor will then help you map out
a plan to get you to the finish-line and into your new home.
One of the most important reasons to team up with your
mortgage professional before you begin the process of
shopping for a home is to obtain a pre-approval. A
pre-approval is part of the official loan process where a
lender provides you with a letter confirming the specific
loan amount you can expect to be approved for.
Presenting a pre-approval letter along with your offer when
you find the home of your dreams will allow you to make
the strongest possible offer. Sellers will see that you have
begun the mortgage process, and that a lender has agreed
to give you the amount you are offering, which can give you
a competitive advantage over other potential buyers.
You can have an even more distinct advantage if you get
pre-approved with American Pacific Mortgage’s Keys on
Time program. It will help you to beat out other bidders,
as a seller knows you have already been pre-approved for
financing and can close in 20-days or less. If you don’t close
on time, you could receive a closing cost credit of $895* (see
footnote).
3
MORTGAGE LOAN ADVISOR
Name:
Company:
Email:
Cell Number:
Fax Number:
NMLS#:

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First time buyer programs offer financial assistance to qualified borrowers
who may need some creative solutions to get into their first home.
Ask your mortgage advisor if there are any first-time buyer programs
available to help you with your purchase. These programs offer financial
assistance to qualified borrowers with:
• Down payment assistance
• Grants to help with closing costs, down payments, or home improvements
• Subsidized interest costs
• Reduced lender’s fees eligibility depending on loan program
Down payment assistance is one of the most utilized benefits of a first-
time buyer program. You may be eligible for one of these federal, state, or
even local city-funded programs if you meet the guidelines for income and
property value. Your mortgage advisor is there to help you learn about the
benefits of these programs and which ones you may qualify for.
RESEARCH FIRST-TIME BUYER PROGRAMS4DOCUMENTS CHECKLIST
Being prepared and gathering
documents can make the loan/
pre-approval process a bit easier.
Generally, these documents include:
• 2 years W2s
• 2 years tax returns
• Recent paystubs (last 30 days)
• 2 months asset statements for
all accounts
• Information on debts or assets
Additional documentation may be
requested after your offer to purchase a
home has been accepted.

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CHOOSE THE BEST MORTGAGE LOAN PROGRAM
Choose the best mortgage option to help you reach your goals of homeownership at a competitive interest rate?
There are a variety of mortgage loan programs available, each with it’s own unique rates, terms, benefits, and
qualifying guidelines. Your mortgage loan advisor can help you compare the pros and cons of different loan
programs, so you can select the mortgage that will best help you reach your goals at the most competitive
rate possible. The requirements for a down payment can vary by loan program.
5
F H A L O A N S
FHA loans are backed by the Federal Housing
Administration. These government insured
loans are designed specifically to help
borrowers get into their homes with more
lenient qualifying guidelines and lower down
payment requirements. FHA loans are a
popular choice for many first-time buyers.
Downpayment requirement: Government
insured loan program designed to help first-
time buyers with down payment requirements
as low as 3.5% for qualified borrowers.
V A L O A N S
VA loans are designed to help active duty
military, veterans, and surviving spouses into
homes. VA loans have more lenient qualifying
guidelines, and offers 100% financing with no
down payment requirements for veterans and
service men and women.
insured loan program that rewards qualified
borrowers such as veterans, active duty
military, and surviving spouses for their service
with 0% down payment requirements.
MORTGAGE LOAN PROGRAMS AT A GLANCE
U S D A L O A N S
USDA loans are government insured 100%
purchase loans for rural property outside of major
metropolitan areas. USDA loans are serviced by
direct lenders that meet federal guidelines. USDA
loans offer unique benefits, including no down
payment requirements for buyers.
insured loan program that requires 0% down for
qualified borrowers purchasing homes in rural
areas outside of major metros.

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J U M B O L O A N S
Jumbo loans are available for
higher loan amounts when you
need a larger home or are buying in
a higher priced real estate market.
Jumbo loans exceed conforming
loan limits, which vary by location
but is generally $417,000. Because
of the higher loan amounts,
Jumbo loans often have higher
down payment and cash reserve
requirements.
I N T E R E S T O N LY L O A N S
An interest only loan allows you to pay only the full monthly interest due
on your loan for the fixed period of the loan, which can range from 5 to
10 years. During the fixed payment period, you’re required to make only
the interest payments; the principal remains unchanged. When the fixed
period expires, you begin paying on the principal, too, resulting in an
increased mortgage payment.
Your loan advisor will not only present you with the mortgage options
available to you based on your personal qualifying factors; they can
also recommend the loans that will help you best reach your personal
financial goals.
F I X E D - R AT E V S : A D J U S TA B L E R AT E M O R T G A G E S
Many loan programs are available as either a fixed rate or adjustable rate mortgage. A fixed rate mortgage is the most
popular option for first-time buyers. With a fixed rate loan, the interest rate and payment remains the same throughout
the life of the loan, which is generally a term of 15 or 30 years. The financial stability of a fixed rate loan makes long-
term financial planning easy for buyers who know that their payment will not change.
An adjustable rate mortgage, also known as an ARM, has an initial fixed rate period typically lasting from 3 - 10 years.
During this initial fixed rate period, an ARM often has a lower interest rate compared to a fixed rate mortgage. After the
initial fixed period is over, the interest rate on an ARM can adjust either up or down based on the financial index it is
attached to. Because of the lower rate during the initial fixed period, the ARM is often an attractive loan for buyers who
have short-term goals for their home, and plan on refinancing or selling within that period.
MORTGAGE LOAN PROGRAMS AT A GLANCE (CONT.)
C O N F O R M I N G /
C O N V E N T I O N A L L O A N S
Conventional loans are ideal for
borrowers with good to excellent
credit. These loans have fairly
conservative guidelines for
borrower credit, down payment,
and debt ratios, and qualifying
borrowers can often get very
competitive interest rates.

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Mortgage insurance, which is also known as Private Mortgage Insurance or PMI, is generally
required when a homebuyer purchases a home with a conventional loan using a down
payment less than 20% of the home’s purchase price.
There are a variety of choices available when paying PMI and each will vary based on your
individual financial situation:
This is the most common type
of PMI. This type of mortgage
insurance has a monthly
premium payment included as
part of your monthly mortgage
payment.
This option allows you to
eliminate the monthly mortgage
insurance payment by paying
the full cost of the mortgage
insurance by including it in the
total cost of the loan amount,
or paying it in full as part of your
closing costs.
This type allows a one-time
upfront fee that is paid by the
lender and eliminates the need
for monthly PMI payments. The
lender typically covers the one-
time upfront fee with a slightly
higher interest rate over the
duration of the loan.
This option reduces your
monthly PMI obligation by
paying a percentage of the loan
amount upfront – you can pay
up to 1.25 percent. The greater
the upfront portion paid, the
lower the monthly payment. In
sum, you are paying some of
the premium upfront, and the
remainder in monthly payments.
DO YOU NEED MORTGAGE INSURANCE?
BORROWER PAID
MORTGAGE INSURANCE
BORROWER PAID
MORTGAGE INSURANCE
LENDER PAID
MORTGAGE INSURANCE
SPLIT EDGE
MORTGAGE INSURANCE
(Monthly Premium) (Single Premium) (Single Premium) (Single + Monthly)

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SHOP AND MAKE AN OFFER ON A HOME
Expand your team of professionals, make your wish list, and go house
hunting with a pre-approval letter in hand
Your mortgage loan advisor was the first professional to join you on your
homebuying journey, but now it’s time to expand your team to include a
real estate professional who can help you find the house of your dreams.
WHY WORK WITH A REAL ESTATE AGENT?
Real estate agents have access to MLS listings - all the local homes listed for
sale by other agents. In addition, there are other benefits to working with a
real estate professional, whose job includes:
• Arranging appointments to view homes
• Advising you on local real estate markets and property values
• Helping you to make a competitive offer
• Negotiating the purchase contract terms with Seller and Seller’s agent
• Recommending inspectors to evaluate the property
• Monitoring the escrow process on your behalf
Partnering with a knowledgeable and experienced real estate agent can
help make the home buying process smoother, easier, and can help you
find the home that you are dreaming of.
6
REAL ESTATE AGENT
Name:
Company:
Email:
Cell Number:

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MAKE A WISH LIST
When you meet with your agent, you may want to have
an idea of what you are looking for in a home. While you
may not be able to check off everything on your list, you
can communicate to your agent which things are your top
priority in a new home. Your list may include:
• Whichneighborhoodorareaoftowndoyouprefertolivein?
• Do you have a preference on schools?
• Do you want a newer home, older home, or fixer upper?
• What style of housing appeals to you?
• How many bedrooms do you want?
• What size house do you prefer?
• What features (inside or out) do you want to have?
DREAM HOME WISH LIST
House size:
How many bedrooms:
Style of housing:
Neighborhood:
School preferences:
Special features:
Other Comments:
Listing out what you want in a home and its surrounding areas will be
helpful for your real estate agent when he/she helps present you with
homes in your price range.

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HOME PURCHASE AND REPAIR PROGRAMS
For some people, a brand new home is at the top of their priority list. For
others, nothing is more appealing than finding a home with some age and
character which needs a little TLC and renovation. If you are a DIYer who
has been dreaming of a home that you can repair and renovate, you may
want to learn about the home purchase and repair programs available to
you. American Pacific Mortgage offers a Dream Home Renovation program,
which can provide 110% financing for qualifying borrower(s) who want to
take advantage of properties that need a little work to become the home
you’re dreaming of.
When you present your offer with your preapproval letter, as well any other
advantages such as a Keys on Time 20-day close guarantee*, we strive to
make you stand out against other offers.
APM LOAN PROGRAMS

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COMPLETE THE MORTGAGE LOAN PROCESS
When your offer has been accepted, it’s time to move forward with the
mortgage loan process.
Now you have the information that a lender needs to move your loan
forward, such as the property address of the home you want to purchase.
Your mortgage advisor will help you update and complete your loan
application so that it can be submitted for final underwriting review and
approval and walk you through the rest of the loan process.
Please note that before your loan gets final approval, you may receive
a list of closing conditions that need to be met. These conditions can
include verification that your employer is current, and proof that you have
obtained homeowner’s insurance, and any other items as requested by the
underwriter. Once closing conditions have been satisfied, the underwriter
issues a clearance and your loan is fully approved.
Buying your first home should be an exciting experience. We can help you
keep it from being an overwhelming one. Request a home loan quote today.
7

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ABOUT AMERICAN PACIFIC MORTGAGE
American Pacific Mortgage is dedicated to helping first time buyers realize
their dream of homeownership, and our mortgage advisors have helped
countless buyers obtain the funding they need. Our top priority is presenting
you with all of your available options, and then helping you make the most
informed decision for you and your financial goals. With over 170 branches
located in 18 states, you can easily find an advisor near you to guide you
through the homebuying process confidently and with ease.
Contact us for more information on the home loan options available to you,
and for the answers to any question you have about buying your first home.
*NotavailableinOregon.The“KeysonTime”programisalimitedguaranteethatAPMCwillprovideacredittotheborrowerof$895afterthecloseofescrowif,duetosome
faultonthepartofAPMC,itsoriginatorsorotherAPMCstaff,apurchasetransactiondoesnotcloseuntiladateaftertheoriginallystatedcloseofescrowdate.The“Keys
onTime”limitedguaranteedoesnotapplyifthepurchasetransactionfailstocloseonorbeforetheanticipatedcloseofescrowdateduetoevents/circumstancesbeyond
APMC’scontrol,includingbutnotlimitedto,delayscausedby:anunacceptableorunexpectedlylowappraisalvalueonthesubjectproperty,actsoromissionsbytheescrow
ortitlecompany,secondlienholderapprovals,shortsaleapproval,orloanconditionsimposedbythelenderthat,despitereasonablediligencebyAPMC,arenotmetby
anypartyinatimelymanner.The“KeysonTime”limitedguaranteetriggerbeginswhentheinitialloanpackageisreceivedbyAPMC’sFulfillmentcenter.Thecomplete
loanpackagemustbereceivedintheAPMCFulfillmentcenteraminimumof20dayspriortotheCOEdate.Exclusions:ThelimitedguaranteedoesnotapplytotheHARP
program,reversemortgages,FHA203k,non-delegatedjumboproductsoranyloansthatrequirepriorapprovalfromaninvestor.Thelimitedguaranteeappliestopurchase
transactionsonly.Allprogramsaresubjecttoborrowerandpropertyqualifications.Rates,terms,andconditionsaresubjecttochangewithoutnotice.NMLS#1850

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